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Explain consumption function with the help of a schedule diagram

Posted by Nishi Kumari 3 years, 10 months ago

CBSE > Class 12 > Economics

1 answers

Sia ? 3 years, 10 months ago

Consumption function refers to the standard equation of consumption which defines the relationship between consumption and income where consumption value can be derived at each level with the use of income value. C= c+ bY where c=autonomous consumption, b= marginal propensity to consume, and Y= income.

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